Understanding Karnataka's Public Procurement Guidelines [Govt-Backed Sources Only!] Other Services

Karnataka is one of India’s economically leading states with an estimated GSDP (Gross State Domestic Product) of₹28 lakh crore in 2024-25. The state is growing across various key sectors, including Information Technology (IT), manufacturing, services, agriculture, etc. 

Due to growing infrastructure and development, the state government, public sector undertakings, or state entities often issue tenders for projects. These tender projects are regulated by certain official guidelines outlined by the state government, which every tenderer must know before applying for any tender to ensure compliance. 

In this blog, we’ll delve into all the important Karnataka tenders guidelines, allowing you to complete projects while maintaining compliance. Let’s begin the blog!

Understanding Public Procurement Processes in Karnataka

The Public Procurement Process is a structured procedure followed by government departments, public sector undertakings, and other state entities to submit bids for goods, services, and works. It is regulated as per Karnataka Transparency in Public Procurements Act, 1999, which aims to promote transparency, fairness, and efficiency. 

Here, we have mentioned a step-by-step process defining the stages of the procurement process in Karnataka. 

Stage 1: Identification of Tender Need 

The public procurement process begins when a government department or public sector undertaking identifies a need for specific goods, services, or works. 

After identifying the need, procurement authorities create a tender document that outlines technical and financial criteria, delivery timelines, payment terms, and penalties and rewards. 

Stage 2: Invitation of Tender

Once the need is identified and a tender document is prepared, the Tender Inviting Authority invites procurement bids via e-tendering platforms. Tenders may be open tenders, limited tenders, or direct procurement based on the complexity and scope of the requirement. 

Stage 3: Vendor Registration 

To apply for tenders, vendors must be registered on the e-tendering platforms, which may require them to submit some necessary documents like company registration, financial documents, and relevant certifications like GST and PAN. 

Stage 4: Bid Submission and Evaluation 

Once registration is done, bidders can submit their bids by including separate technical proposals and financial proposals. The Tender Inviting Authority evaluates both proposals separately to select the most qualified vendor. 

Stage 5: Negotiation and Award Contract 

After selecting a qualified vendor, both parties negotiate and agree to final terms and conditions, including price, delivery timelines, and other contractual obligations. Then, the Tender Inviting Authority issues a Letter of Intent to begin work. 

Stage 6: Final Inspection and Payment Processing

When the vendor makes the final submission, a final inspection is carried out by concerned authorities to ensure that all contract terms and quality standards are met. Later, authorities make the final payment while documenting the financial transaction for auditing and transparency. 

Standard Procurement Guidelines of Karnataka Government

Here, we’ve mentioned some of Karnataka's essential public procurement guidelines. To learn more, you can download the official guidelines documents by clicking on this link. 

Guidelines Related to Negotiations and Awarding Contract 

• Negotiating solely for the purpose of obtaining lower prices must be done only in exceptional circumstances like lack of competition (under three), single bid, suspected collusion, or where the lowest evaluated responsive bid is substantially above the estimated cost. 

• If any changes are made in the tender document, the Tender Accepting Authority must pass orders for reinviting tenders. 

• When negotiations fail, the Tender Accepting Authority must issue orders on the future course of action to be taken by the Tender Inviting Authority, including adopting a revised procurement strategy. 

• For tenders determined high in terms of Para 3.2, the Tender Scrutiny Committee or the Evaluating Officer must (i) look for items that are considered high and contribute to the increase, (ii) get the break of rates from the lowest bidding tenderer and make a detailed examination of reasonableness. If the Tender Scrutiny Committee or the Evaluating Officer finds the tenderer's explanation satisfying, they should recommend their name for the acceptance of the tender. 

Related to the Verification of Qualification Criteria 

• The qualification criteria must be properly incorporated into pre-qualification and tender documents for works and goods to check the requisite resources required for satisfactory performance. 

• Tenderers meeting the minimum qualification criteria can be qualified only if their available Tender capacity surpasses the total tender value. 

• The tender documents whose work/supply costs more than ₹20 lakhs but below ₹50 lakhs should have post-qualification criteria. The tender must be satisfied by the lowest responsive tenderer for available tender capacity and aggregate qualification criteria before awarding the contract. 

• For the tenders cost less than ₹20 lakhs, it is not required to separately incorporate qualification criteria in tender documents for works/supply.

Related to Tender Submission

• The first stage of the tender consists only of a technical tender without referring to rates and prices for completing the facilities and a list of deviations to the technical and commercial conditions mentioned in the tender document. 

• The Tender Inviting Authority must open and evaluate the first stage to ensure whether the tenderer has submitted a technically responsive tender and meets the required minimum acceptable criteria. 

• Only tenderers who have submitted a technically responsive and acceptable first-stage tender must be invited to submit a second-stage tender. 

Related to Price Adjustment Clause in Tender Documents 

• A Price adjustment clause must be included in the Works contract whose estimated costs are up to ₹100 lakhs or more, while the period of completion is 12 months or more. 

• The Goods and Equipment tender document should not include the Price Adjustment Clause. However, the Tender Inviting Authority may be required to incorporate a Price Adjustment clause for the procurement of electric cables, transformers, motors, and generators that consist of raw materials subject to price fluctuations after obtaining approval from the concerned Head of the Department of Managing Director of the Public Undertakings/Board. 

• The Price Adjustment shall be applied only for the work done from the date of commencement up to the end of the original period of completion or extensions granted by the Employer. It shall not apply to the work carried out beyond the stipulated period of completion for reasons attributable to the Contractor. 

Related to Procurement Reforms of Measurement of Works and Supplies 

• Payments related to all work done other than daily labor and for all supplies are made as per measurements recorded in the measurement books. 

• The entries in the measurement book should be recorded at the work spot indelibly in ink to make tempering, unauthorized additions, and alterations difficult. 

• Measurements related to all works and repairs should be taken by subordinates in charge and checked by Sub-Divisional Officers and Divisional Officers. The Assistant Executive Engineer (AEE) has to check 75% of works costing ₹5,000 or more and 50% of other works and repairs. Here, the Executive Engineer is to check 25% of items. 

How to View Karnataka Tenders on TendersOnTime?

Below, we've mentioned a step-by-step process to view Karnataka Tenders on TendersOnTime. 

Step 1: Log In or Register 

First, you must visit the TendersOnTime site via www.tendersontime.com. Click on the 'Login' or 'Register' button at the top right corner of the screen.

Step 2: Search for Tenders 

After logging in, the website will redirect you to their homepage or dashboard. You need to type Karnataka as a location in the Search Box or Advanced Search section. 

Step 3: Filter the Search Results 

While searching for Karnataka tenders, you can even refine results by using filtering options like tender type, industry type, tender status, and publication date. 

Step 4: Review Tender Details

Before applying for any tender, tap on the tender title to see the related information, which may involve: 

• Tender Description
• Bid Submission Date
• Eligibility Criteria
• Tender Documents
• Contact Information
• Project Timeline
• Bid Submission Guidelines 

To learn more information about the project, you can download the tender document of the specified tender. For more glimpses of tenders from Karnataka, visitors can directly visit the page. https://www.tendersontime.com/india/karnataka-tenders/

Frequently Asked Questions

Q1. What is the Karnataka Tender Act? 

The Karnataka Tender Act refers to a legislative framework designed by the state government to regulate the public procurement process in the state of Karnataka. It promotes transparency, fairness, and accountability while awarding the contract to a qualified bidder. 

Q2. How to get government tenders in Karnataka?

Tenderers need to visit the Karnataka Public Procurement Portal (KPOP) or GeM to access government tenders in the state of Karnataka. Alternatively, you can visit www.tendersontime.com to access all types of tenders in a hassle-free way. 

Q3. How do tenders in e-procurement Karnataka be applied?

Below, we've mentioned a step-by-step process for applying tenders via e-procurement in Karnataka. 

• Visit the government e-procurement portal through kppp.karnataka.gov.in 
• Create your profile on the portal and receive your Class-III digital signature certificate 
• Search for the tenders as per sector and project you're interested in 
• Next, download the tender document, prepare for bidding, and submit it online before closing. 

Q4. What is the Karnataka Public Procurement Portal?

Karnataka Public Procurement Portal is a state government-based platform designed to foster efficient and transparent procurement processes for public works, goods, and services. It is a one-stop solution for all government tenders in Karnataka, allowing you to apply for the tenders seamlessly. 

Q5. What is the KTPP Act in Karnataka? 

The Karnataka Public Procurement Policy Act refers to legal frameworks that govern the public procurement process in the state of Karnataka while aiming for transparency and fairness. Under this act, the state government has outlined the responsibilities of government agencies, contractors, and other stakeholders.